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How do I compare performance of funds in my portfolio?

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ilyaz
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How do I compare performance of funds in my portfolio?  Reply with quote  

I have a retirement account where, up until certain point, say Jan-01-2010, I was contributing 100% to a single mutual fund, call it FundA. Then I decided that I would split my new contribs where 90% would go to FundA and 10% would go to a different FundB. Contributions are monthly. Now I want to calculate whether this was a good idea. In other words, I need to figure out whether I would have had more money now had I continued putting these 10% into FundA between Jan-01-2010 and now.

This is probably not a very complicated math exercise but I want to make sure i do it right and use the right inputs to compare. So my questions are:
1. What sort of formulas would I use to compare? Are there standard type calculators I could use for this purpose?
2. What are the numbers I would need to plug into these formulas? Obviously. I am looking for the minimal amount of info that would be enough to get the answer.

Thanks much!
Post Thu Mar 22, 2012 8:40 pm
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coaster
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Well, if you're going to do a what-if in hindsight, you just take the total shares times the net asset value at the beginning for the starting value; total shares (before trade) times the net asset value at the end of the period for the ending value, then compare the ending value without trade to the actual ending value post trade.

Was your decision a good idea? Honestly, asking these kinds of questions and making decisions based on the results of your analysis over one iteration could lead you to make poor decisions. It's much better to be doing this on a periodic basis, say every month, so you can see how your results vary over time. One sample could be turn out to be an outlier, you never know if it's just one sample.

~Tim~
Post Fri Mar 23, 2012 6:06 am
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ETFs_R_Best
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Mutual funds are "old school". After fees they under perform unmanaged index funds. There's a zillion ETF's to choose from.

"The statistical evidence proving that stock index funds outperform between 80% and 90% of actively managed equity funds is so overwhelming that it takes enormously expensive advertising campaigns to obscure the truth from investors. -- Peter Lynch
Post Sun May 13, 2012 2:33 am
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clydewolf
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Re: How do I compare performance of funds in my portfolio?  Reply with quote  

quote:
Originally posted by ilyaz
I have a retirement account where, up until certain point, say Jan-01-2010, I was contributing 100% to a single mutual fund, call it FundA. Then I decided that I would split my new contribs where 90% would go to FundA and 10% would go to a different FundB. Contributions are monthly. Now I want to calculate whether this was a good idea. In other words, I need to figure out whether I would have had more money now had I continued putting these 10% into FundA between Jan-01-2010 and now.

This is probably not a very complicated math exercise but I want to make sure i do it right and use the right inputs to compare. So my questions are:
1. What sort of formulas would I use to compare? Are there standard type calculators I could use for this purpose?
2. What are the numbers I would need to plug into these formulas? Obviously. I am looking for the minimal amount of info that would be enough to get the answer.

Thanks much!

Ilyaz,

Good to see you trying to do some different things with your investing.

To calculate the growth or loss of each fund:
(Fund Current Value/Fund Starting Value -1) * 100 = % of growth or loss.

Depending on the type of funds and the fund category you may have diversified to minimize some risk.
Post Tue May 29, 2012 6:03 pm
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sethm
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I used to be quite religious about tracking portfolio performance, but not anymore. These days, I care far more about maintaining portfolio balance and keeping trading costs in check.
Post Sat Jul 14, 2012 8:43 am
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